Overtime for managers

The Labour Code regulates working hours differently for those employed in a managerial position. Unlike standard employees, employees who manage people on behalf of the employer, as well as managers of separate organisational units are expected to perform work, when necessary, outside of normal working hours without being paid extra remuneration or overtime allowance. An exception to this rule is overtime worked on Sundays and holidays, if the employee does not receive an extra day off in lieu of overtime.

The idea behind this regulation is to motivate people in managerial positions to manage the work and the team of people in an efficient manner to ensure that ongoing tasks are performed during normal working hours. However, the vagueness of this provision may raise some questions. It should certainly not be viewed strictly, as such individuals may, in certain cases, be entitled to overtime pay.

Above all, a person who performs a managerial function and who, due to specific organisational characteristics, cannot complete work in normal hours cannot count on additional remuneration, especially where that person also has a real influence on the organisation and functioning of the work.

Additional remuneration may be due, for example, if a managerial employee is charged with a number of tasks that cannot be completed in the basic time frame, or if they perform, over a longer period of time, duties that are not related to the managerial function, i.e. for example duties intended for another lower-level position. The poor organisation of the employer’s work also cannot be an argument for a manager not being entitled to overtime pay.

For example, if a manager makes staffing requests for a position and the employer ignores these requests, despite real staffing shortages, such an action may lead to the manager having to work overtime through no fault of their own. In such a case, overtime pay would probably be due, as the overtime work is not the result of mismanagement by the manager and is not their independent decision.

It should also be emphasised that overtime work should not be permanent in nature. The phrase “when necessary” should be seen as an exceptional need justified by special circumstances or unforeseen, and not as something standard, belonging to one of the duties of a managerial position.